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mrs_skeptik [129]
3 years ago
9

SIROM Scientific Solutions has $10 million of outstanding equity and $5 million of bank debt. The bank debt costs 5% per year. T

he estimated equity beta is 2. If the market risk premium is 9% and the risk-free rate is 3%, compute the weighted average cost of capital if the firm’s tax rate is 30%.
Business
1 answer:
Maru [420]3 years ago
6 0

Answer:

15.167%

Explanation:

For computing the WACC we need to do the following calculations which are shown below:

Cost of equity = Risk free rate + Beta × Market risk premium  

= 3% + 2 × 9%

= 21%  

After tax cost of debt = Cost of debt ×  (1-Tax Rate)

= 5% × (1 - 0.30)

= 3.50%

Now

WACC = Weight of debt ×  Cost of debt + Weight of equity × Cost of equity

= 5 ÷ 15 × 3.50 + 10 ÷ 15 × 21

= 1.167% + 14%

= 15.167%

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You are a rookie police officer who responds to a call for officer assistance. Arriving at the scene, you see a ring of officers
BlackZzzverrR [31]

Answer:

Mr. X is another cop who reacts to a call made by help official. At the point when he came. he saw that the ring of officials encompassed the suspect. Prior to the appearance of the Mr. X, he doesn't have the foggiest idea what occurred, however around then. he saw that the sergeant utilized the taser. which is a sort of weapon on the suspect. At that point consistently 2 to 3 officials were hitting the suspect by their tum for a few minutes. Nobody said whatever showed the improper demonstration.  

Figure out what Mr. X will do later on the off chance that he requested to affirm against the suspect: Mr. X ought to have halted ruthlessness that was conflicting with the suspect around then itself. Afterwards if Mr. X asked to affirming perception made by the officials told the speculate was giving the motions of compromising them. In any case, the officials needed to escape from the circumstance they lied that suspect was undermining.  

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6 0
4 years ago
Labor market equilibrium is best characterized by Group of answer choices a wage at which all workers are above the poverty leve
Cloud [144]

Answer:

a wage at which the number of people willing to work equals the number of workers firms are willing to hire

Explanation:

Labor market equilibrium is where the demand curve for labour interests the supply curve for labour. At this point, the wage rate is the wage at which the number of people willing to work equals the number of workers firms are willing to hire

Please check the attached image for a graph depicting equilibrium in the labour market

8 0
3 years ago
Union local school district has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 16 years to maturity.
Dmitriy789 [7]

Answer:

Bond Price​= $4,700.15

Explanation:

Giving the following information:

coupon rate= 0.032/2= 0.016

YTM= 0.037/2= 0.0185

Number of periods= 16*2= 32

Par value= $5,000

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 80*{[1 - (1.0185^-32)] / 0.0185} + (5,000/1.0185^32)

Bond Price​= 1,919.05 + 2,781.10

Bond Price​= $4,700.15

8 0
3 years ago
Deposits of commercial banks at the federal reserve bank are called?
artcher [175]

Deposits of commercial banks at the federal reserve bank are called federal funds.

A bank is a financial institution that accepts deposits from the public and makes loans while depositing demand deposits. Loans can be made directly by banks or indirectly through the capital markets.

Banks do many things, but their main job is to take money, called deposits, from people who have money, pool it, and lend it to people who need it. A bank is an intermediary between depositors (who lend money to the bank) and borrowers (who the bank lends money to).

Banks, institutions dealing in money and its substitutes and providing other money-related services. In their function as financial intermediaries, banks accept deposits and authorize loans.

Learn more about bank here:brainly.com/question/14368059

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6 0
2 years ago
Find the total cost, rounded to the nearest cent, of 3.9 pounds of corned beef at $5.49 per pound and 4.6 pounds of pastrami at
Vanyuwa [196]

Answer: $44.18

Explanation:

Given the following :

Cost of corned beef per pound = $5.49

Cost of pastrami per pound = $4.95

Pound of corned beef = 3.9 pounds

Pound of pastrami = 4.6 pounds

Therefore ;

Total cost = (cost per pound × number of pound)

Total Cost of corned beef = 3.9 × $5.49 = $21.411

Total cost of pastrami = 4.6 × $4.95 = $22.77

Total cost of corned beef and pastrami :

$21.411 + $22.77 = $44.181

$44.18

8 0
4 years ago
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